Inflation ( CCPI)35.3% (April 2023)
GDP-12.4% (4Q 2022)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate25.60%
12M T-Bill Rate22.97%
2Y T-Bond Rate29.25%/ 30.00%
4Y T-Bond Rate27.25% / 27.35%
Reserves $2.75Bn (April 2023)
Cum. Trade Deficit $862Mn (March 2023)
Cum. Fiscal DeficitLKR 2,300 Bn (Dec 2022)

Interest rate increased further, while CBSL managed to raised all the funds to repay the liabilities

Interest RatesOct 18, 2021
Interest rate increased further, while CBSL managed to raised all the funds to repay the liabilities
This story is available exclusively to subscribers. Become an member and start reading now.
Sri Lanka T-bills yields are rising at a rapid phase especially on 91Days. CBSL has allowed the T-bill price to fell free float as yields climbed to 8.39%, 8.16% & 8.17%. After 13 auctions CBSL has been successful in raising all the funds that need to settle the liabilities on Friday. CBSL has allowed to increased the 91Days T-bills by 3% after the last rate hike. This strategy would force institutional investors to reconsider their strategy of borrowing short-term in LKR terms to finance domestic expanse while keeping FX earning without repatriation.


Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.